Note On Intangible Assets And Corporate Strategy Case Study Solution


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Note On Intangible Assets And Corporate Strategy Case Study Analysis

Background and Facts

Note On Intangible Assets And Corporate Strategy a workplace supplies store for small and average sized services has just recently been associated with planning for a merger with its rival Residence Deport, which has impacted efficiency levels in departmentswith the elderly manager associated with legal complications put forth by the government Trade Payment. With the Advertising and marketing Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the role in the future. With obstacles in the type of a possible cultural change and also reduced staff member spirits, the company is in need of a full reengineering initiative at the advertising division.

Issue Statement
Porter's 5 Forces Analysis
The potential social adjustment at the marketing division of Note On Intangible Assets And Corporate Strategy is raising unpredictability in the working environment resulting in numerous difficulties for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing calculated choices since Stapes Inc. needed to desert its plans of combining with Office Deport after the Federal Profession Compensation's intervention while doing so. Provided the truth that the store has an international presence with branches in UK, U.S.A., Canada and Germany, political consider each of these nations may be able to influence efficiency or strategic goals. Federal Profession Compensation's antitrust suit against the merging used up beneficial time of the company's elderly management suggesting that 'political' factors can have major effects for a global company.

Economic Factors: Financial factors such as the appearance of local business in the worldwide scenario recommend that Note On Intangible Assets And Corporate Strategy is thriving in a setting where there is prospective development of organisations. Reality that shop consumers are mostly looking for workplace supplies for residence workplaces recommends that the market has a rising pattern of business owners and home based services.

Social factors: Social fads in the economic situation show that customers are looking for convenience along with appealing rates. Marketing research shows how the customer for Note On Intangible Assets And Corporate Strategy does not have recognition regarding discovering solutions which can provide a mix of comfort and also inexpensive.

Technical factors: Innovation plays an important duty in Note On Intangible Assets And Corporate Strategy's service approach especially as the company is piloting Modern technology centers which would certainly supply modern technology sales and also support in the kind of memory upgrades, outer installments. (Recap of PEST in appendix 2).

OB Issues and also Symptoms.

Numerous underlying Organizational Actions concerns can be seen in Note On Intangible Assets And Corporate Strategy's case as highlighted in this area.

Concerns regarding cultural adjustment: There is worry concerning a cultural change that would certainly take place as soon as Todd Krasnow leaves from his position as the Exec Vice President of Marketing with most of the staff members already showing discontent over this potential action. This predicted change has actually produced stress and anxiety in the workplace which has actually been combined with the past anxiety of preparing the firm for a prospective merging with House Deport.
Pest Analysis
Stressful Work Environment for Newcomers: There is shortage of workers that can match the difficult atmosphere of a fast-paced organization. Not only does this lead to problem in finding the best individuals, it puts stress on brand-new hires as can not endure the rate and stress that the organization expects them to birth.

Dual Coverage Lines: Newcomers discover this business society cumbersome and challenging to manage specifically as populated line connections are meant to be weak generally as well as unbiased setup as well as performance assessment is still done by the strong line manager. This indicates that newcomers might shed quality regarding their corresponding roles and purposes particularly as populated line coverage does not maintain them in direct communication with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles even though it had actually been speculated that the latter would certainly take Krasnow's position came as an impact to her morale. Lewis may have been capable and also suitable for the work however the truth that Kransnow's departure would make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.

Concern & Job Insecurity: Fear and insecurity can be determined as 2 major problems that Lewis would be dealing with specifically as the merger has now be terminated and also 2 elderly execs of the marketing department would be leaving. The entire obligation of the division would certainly be dropping on Lewis's shoulders that would not simply supervise of brining concerning a social change yet would certainly likewise have to prove herself in her new role.

Incompatible Administration Design of Leader: Lewis's monitoring design and also its conflict with the advertising and marketing division's duty can additionally be seen as an OB challenge specifically as she has actually been used to dealing with problems in the procedures department where workers are shown to concentrate on procedures and get them right. The advertising and marketing department on the other hand can be viewed as a group of people who are utilized to being supported by Krasnow who concentrated much more on result than procedures.

Interdepartmental Disputes: Interdepartmental disputes between 3 divisions, advertising and marketing, merchandizing and also operations respectively over the allocation of the advertising and marketing mix can be determined as one more OB concern. The advertising and marketing division does not share the exact same vision as the other two divisions regarding the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing as well as procedures divisions do not concur over the marketing mix allocation among one an additional either.

Disintegration in Advertising And Marketing Department: Disintegration between the marketing and advertising departments can be identified as one more OB concern which could need more focus. The fact that the advertising and marketing sections in the advertising division are disconnected is protecting against both departments from gaining from each various other's experience and also experience. Combination of advertising with merchandising as well as operations would certainly come to be harder if the advertising department itself is disintegrated which can be another possible OB worry.

Note On Intangible Assets And Corporate Strategy Analysis

Various theories have been made use of to discuss the conditions to get more clarity about the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most managers believe that juniors are easy and careless, have little ambition and resist change. The difficult variation of this theory stressed browbeating, tight controls, threats and also punishments. Gradually it produces low efficiency, subtle sabotage and also competition (Bargain, 2003). Although the situation at Note On Intangible Assets And Corporate Strategy is not entirely adhering to Concept X, it can be seen that new hires are locating this atmosphere instead difficult which may ultimately cause a greater inclination of the administration towards Concept X. According to McGregor's advocated sight, which he called Concept Y, the vital job of the management is to organize business problems to make sure that people can attain their own goals best by directing their initiatives towards business benefits. If people find no complete satisfaction in their work, the administration would have little option yet to depend on theory X and also external control (Offer, 2003). Also while evaluating Lewis's monitoring design, concept X might have appropriated in the procedures division somewhat but the Advertising and marketing division would call for reliance on Theory Y so as to get the creativity and also originality from the teams.

Tuckman's Teamwork Concept: Regarding Lewis's issue concerning bringing harmony between the advertising and marketing department is worried, this would initially bring about clash as gone over by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). As per Tuckman's concept shown in appendix 3, during the initial stage of team development, people might not bond, as they are active locating their place in the group. By incorporating the advertising and marketing department's work, there may coincide first disconnect which can cause the 2nd phase of 'storming' where the groups challenge each other. Nevertheless, it is only during the 3rd phase or 'norming' when they would certainly integrate to share suggestions prior to the team can produce harmony in the fourth stage 'performing'.

When people are provided with modification, they enter stage one and so there might be emotions like despair, unpredictability, aggravation, temper, anxiety, rejection and disorientation.The circumstance at the advertising division of Note On Intangible Assets And Corporate Strategy is comparable so Lewis can obtain comfortable with the suggestion that it is not remarkable behavior. It is throughout this phase that Lewis will certainly have to offer guidance to the department so that they can discover a feeling of direction. It can be seen exactly how Krasnow has actually currently made this change easier by making Lewis obtain entailed in the department a year prior to his real departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has discusses the significance of 'safety requires as being a lower level need of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to really feel protected and out of danger' is at the 2nd level of needs. Prior to an employee can be made to develop mentally, he needs to have his 'Physical 'as well as 'Security' needs fulfilled.

SWOT Analysis for Note On Intangible Assets And Corporate Strategy Case Study

Effects of Analysis.

The OB analysis has actually looked at various concepts to comprehend just how to cope with the current situation at hand. The complying with three alternatives have actually been suggested to assist Lewis deal with the organizational obstacles in the marketing division. Each of these alternatives has actually been proposed for relieving the shift needed to bring the advertising and marketing division in accordance with the demands of the market as well as for making the cultural adjustment that would follow as soon as the current leader leaves.

Assimilation of marketing and advertising features. Separating Adverting and also Production functions. Combination of Advertising And Marketing with Operations.

Evaluation of Alternatives.

Assimilation of Advertising & Advertising And Marketing Functions: The in-house advertising and marketing company of Note On Intangible Assets And Corporate Strategy is already strength for the organization in terms of conserving up on overheads connected to advertising and marketing as well as promo. Since no brand-new employment has actually been done after Bridget Cole's departure with the coverage line being straight assigned to Krasnow for the advertising function, this is a favorable possibility for incorporating the marketing and advertising features. Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merger days has competence in business-to-business marketing along with agency as well as retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to deal with both advertising and marketing functions.

The benefit of this method is that it will certainly incorporate both features while reducing the need for hiring an additional source for advertising. Lewis would certainly be heading the advertising and marketing department and also in any kind of case her substitute would certainly be required for the current function that she is executing. The drawback of this choice is that external hiring might cause bitterness from inner workers who may be looking at the setting of EVP after Lewis takes over Krasnow's position.

Separating Adverting as well as Production: Provided the competitive stress as well as high top quality work needed from the advertising agency, it is recommended that Lewis needs to enable the production unit to be a separate function from the advertising system. Given that many advertising agencies had these 2 functions as different devices, it makes even more feeling to comply with the norm.

Assimilation of Advertising And Marketing with Operations: Since Lewis is already taking care of the marketing as well as operations departments all at once; it makes feeling to integrate the two functions given that she has actually been effectively taking treatment of both ends. The truth that Lewis has to adjust her administration style for the advertising division recommends that these two divisions would be culturally varied.


An analysis of the 3 options indicates that integration of marketing and also procedures would not be a feasible move due to the large differences between the 2 departments in spite of the fact that presently Lewis is dealing with both. While splitting up of the manufacturing function might have been a favorable action for the advertising department, the fact that it would imply putting a 3rd function under Lewis's wing indicates this must be stayed clear of.

Activity Plan.
Lewis will take over the function of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would be combined.

Judith Shapiro will certainly be worked with to take Lewis's place as SVP of advertising and marketing.

Manufacturing function will certainly remain part of advertising and marketing under marketing function.

Lewis will certainly separate herself from operations.

A democratic management style with staff member empowerment will certainly be utilized in advertising division.

Open up door policy and also emphasis on cross department communication will be targeted at removing disharmony.

Contingency strategy.

If the integration does not work out as intended, a contingency plan would follow which would divide the manufacturing function from the advertising feature to decrease the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising and marketing division without an SVP. In that case the production feature will absolutely be separated by putting it under an SVP production.